Jim Ferry: Google Predictably Punts on Deprecating Cookies
Welcome to the Volition View!
In today's Volition View, we're proud to feature a thought piece from Jim Ferry, Partner at Volition Capital, where he shares his thoughts on Google's decision to deprecate cookies. Also included in this edition:
Google Predictably Punts on Deprecating Cookies
Over my past 10 years at Volition Capital and since our founding, we have been active investors in the AdTech space. Our investments have included Connatix (Exited: Court Square), VisualIQ (Exited: Nielsen), Aditude, and most recently Screenverse, where we announced our $10.5M investment in May.
During this period, the AdTech industry has experienced disruptive generational shifts including the growth of alternative digital channels, such as mobile, CTV, and DOOH. On top of these trends, one of the most controversial developments in this sector has been around Google’s intentions to deprecate cookies. Google first announced in 2020 they would be removing cookies after many of their browser competitors like Safari (2017), Mozilla (2019), and Edge (2020) did so.
In the years since the initial announcement, Volition has long been skeptical of whether Google would ultimately remove cookies for a variety of reasons. Specifically, in April of ’22, I wrote a piece titled “Go Ahead, Track My Online Data.”
This piece discusses a variety of topics including how targeted ads based on personal data is critical to the success of the internet, from both a monetization and experiential perspective. Additionally, I shared that while the move to tighter restrictions around data is marketed as giving users more ownership and privacy of their data, “the inverse may be true.” In this scenario, Google’s walled garden would get taller as they would still have access to consumers data while other parties would not.
Another key aspect of the Google story that has made us question whether they would deprecate cookies is the scale that Chrome operates at compared to other browsers. Specifically, Google Chrome is used by over 50% of users in North America and over 60% of internet users across the world. Due to the fact that they are the last remaining cookie internet browser and therefore critical to the estimated $677 billion global digital ad spend industry, the loss of cookies on the platform would be devastating for publishers and advertisers alike.
As the years went on and more regulatory questions came into play, it seemed as if the industry as whole was calling Google’s bluff. Many of the cutting edge founders that we were talking to just were not preparing for a cookie-less world.
Last month, those that questioned Google’s attempts to create a cookie-less world were vindicated. Google officially shared after feedback “from a wide variety of stakeholders” including the UK’s Competition and Markets Authority (CMA) and Information Commissioner’s Office (ICO), that they no longer will be looking to deprecate cookies. Rather, Anthony Chavez, VP of Google’s Privacy Sandbox, announced that they would be introducing a “new experience in Chrome” that will give people “an informed choice” across their browsing that they can “adjust at any time.
When I talked to Aditude CEO, Jared Siegal about his reaction to the decision, he shared the following: “I believe most publishers are probably celebrating right now. Whatever the future state is going to be, it seems less doom and gloom. Google is now asking for far more feedback from publishers and advertisers, so the hope is the eventual privacy sandbox solution will be more on par with what everyone involved needs.”
Volition has always believed in the power of the AdTech space and what this can mean for consumers, founders, and value creation regardless of the changes in the marketplace. If you are a founder in the AdTech space, reach out as the Volition team would love to connect.
Click here to read the piece on Volition's website.
Scaling Success: Creatio's Journey to a $1.2B Valuation with CEO Katherine Kostereva
Our most recent episode of the Scaling Success podcast is live and this month features a conversation with Creatio CEO, Katherine Kostereva.
In the conversation, Volition Capital Managing Partner, Sean Cantwell, and Katherine Kostereva discuss a variety of topics including Creatio's journey to becoming a "unicorn" company, Katherine's energy and commitment to Creatio's mission, the company's AI opportunity, and so much more!
Make sure to check out the full episode here.
Volition Media: Building World Class Enduring Businesses
Earlier this month, Volition Capital COO, Pete Lamson, published a piece reflecting on his first 90 days at Volition. In the piece, Pete articulates his vision for how the Volition Operations Team will build on their strong foundation to further support portfolio companies in becoming world class enduring businesses. Specifically, Pete highlighted the upcoming launch of Volition Edge, a proprietary platform that provides access to shared best practices, shared learning, and industry experts from our combined decades of experience building world-class companies.
Additionally, Pete discusses how Volition Edge will launch at Volition Capital’s inaugural Leadership Summit in Boston this October. Over the course of this live two-day event, Volition portfolio company leadership will come together for in-depth discussions ranging from annual strategic planning to performance-based recruiting and performance management best practices to AI’s impact on emerging growth businesses, and more.
Recommended by LinkedIn
Check out Pete's full piece here.
Portfolio News: Aditude, Automatiq, Messagepoint, Revi, US Mobile
Volition Talent Network: Creatio, Assent, Screenverse
There are so many exciting opportunities at Volition portfolio companies, and they look to hire the best talent to grow and scale. Check out these opportunities from within the Volition Capital portfolio and share with anyone you think could be a great fit:
Creatio is looking for an experienced Head of IT Security with a background in IT product development to manage and oversee all information security matters within the company.
Assent is looking for a Director, Sales who is responsible for managing and leading a team of Account Executives to meet and exceed established sales targets. The Director, Sales is responsible for developing sales plans based on company goals that will enable sales growth and customer satisfaction. This individual will play a crucial role in enabling Assent Compliance to meet its aggressive growth and revenue targets through effective leadership, mentoring and coaching, and engagement with Sales and Business Development leadership to ensure Assent's success over the longer-term.
As Screenverse's Technical Account Manager (TAM), you will be working closely with their client-facing teams to ensure the technical success of the company's customers. Your role will involve elements of project management to ensure a streamlined and efficient onboarding of new customers, as well as being the technical subject matter expert with Screenverse's existing customers in collaboration with the company's Supply team.
Team Update: Volition Capital Team Hires & 2024 Analyst Class
Volition Capital is thrilled to announce several new hires as well as our Analyst Class of 2024!
Deal Team: Danielle Brown (Associate), Isabelle Tashima (Associate), Justin Chung (Analyst), Trevor Eckler (Analyst), James McGibbon (Analyst), Cassidy Piersiak (Analyst), Ainsley Radell (Analyst), Nicole Schwenk (Analyst).
Operations Team: Kevin Lamo (Finance Manager), Allyson Gallagher (Accounting Manager).
Make sure to check out the link here for more information on our new hires. Welcome to Volition!
Thanks for the read! We would love to hear what you think, so feel free to reply to this email if you would like to chat.
-The Volition Team
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